Los Angeles represents a wide spread in population demographic, spanning from the Beverly Hills mansions to the surfer streets of Santa Monica. Regardless of income level, all L.A. residents are subject to falling behind in their income taxes, especially considering California’s steep rates. If you’re living in Los Angeles and have found yourself in need of either state or federal tax relief help, the team of tax attorneys at Community Tax can help. We’re here to serve the 310 area code and all of its neighboring cities with cost-effective solutions for managing issues with the Internal Revenue Service. We specialize in a wide range of tax resolution services and finding IRS back tax help, no matter how large your outstanding owed tax may be. You may be facing estate tax matters or need help with payroll tax issues, and finding competent tax lawyers could help you avoid collection matters down the road.
If you’re feeling the pressure of Uncle Sam knocking at your door, keep reading to learn how CTax can provide affordable tax relief – both in Los Angeles and beyond.
California and Federal Tax Relief
Living in California isn’t cheap. We’re not only referring to the expensive real estate (and associated property taxes) found in Brentwood and along Rodeo Drive; Los Angeles residents are also subject to high food costs, exorbitant gas prices, and steep state income tax rates – on top of their federal tax obligations. That’s when it pays to have tax lawyers with a deep understanding of negotiating complicated processes with the California Franchise Tax Board, the California Department of Tax and Feed (formerly called the State Board of Equalization), and the Employment Development Department. Take a look at the progressive rates listed in the chart below. Someone with an income of $600,000 will pay $73,800 in California state income tax, which may or may not seem reasonable for such wealthy taxpayers. However, even those who rack in a modest income – say, $42,500 – will owe $3,400 in income taxes for a given fiscal year. See? It’s not just movie stars with offshore accounts who may need the legal services of a dedicated team.
However you look at it, thousands of dollars is a lot of money to set aside for a tax bill, which makes it unsurprising that so many Los Angeles residents come up short during tax season and fall into either state taxes owed, IRS taxes owed, or both. There are many different scenarios taxpayers may come to find themselves in a tax law firm, but let’s take a look at the most common situations and penalties:
You Can’t Afford to Pay Your Tax Bill
Let’s say you’re a law-abiding L.A. citizen who dutifully filed their tax return, and perhaps expected a sizable refund. As it turns out, you claimed too many allowances on your W-2 and didn’t withhold enough taxes from your monthly income. Now, you owe the government money, and since you weren’t prepared for this, don’t have enough readily-accessible cash set aside to pay your bill. If you can’t pay or won’t pay your tax obligation, the IRS will assess you with additional penalties, including a failure-to-pay penalty. This results in a fee generally around 0.5 percent per month of your unpaid taxes. It begins accruing the day after your taxes are due and doesn’t stop until they are either paid off or capped at 25 percent.
You Didn’t File Your Taxes
For whatever reason, you neglected to file your federal income tax return on time. Maybe you forgot, or life got in the way, but in any case the deadline came and went without your return having been submitted. In some cases, the IRS might do a substitute federal income tax return filing on your behalf, and the only consequence you’ll face is forgoing the refund you would have received. In other cases, however, the IRS is not so keen on saving you money, and could decide to apply a failure-to-file penalty to your account. The penalty for failing to file your income taxes is much steeper than failing to pay, as the IRS takes tax evasion very seriously – and at times may even prosecute it with criminal charges. Unfortunately, even if tax evasion wasn’t your end game, and the reason you neglected to file was innocent, you could still face the failure-to-file fee of around 5 percent of unpaid taxes for each month or partial month your return is late. You might think that the individual income tax rates are steep, but consider the penalties of not filing at all. According to the IRS, the failure-to-file penalty is on average ten times more costly than the failure-to-pay penalty. If you fail to file and fail to pay, you can begin accumulating owed tax very rapidly with compounded penalties.
These are the two most common ways to find yourself in need of IRS tax relief, but there are plenty of scenarios that could lead to you owing the government money, including audits, estate taxes, and payroll taxes for limited liability companies. Without seeking out IRS back tax help from tax attorneys with extensive experience, unresolved owed tax can create a number of scary situations:
Tax Lien
A tax lien is a legal claim against your property to secure payment of your owed tax. These usually come into being when the IRS assesses a tax against you and sends you a bill that you neglect or refuse to pay.
Tax Levy
An IRS levy permits the legal seizure of your property to satisfy a tax owed. It can garnish your wages, take money from your bank account or other financial institution, seize and sell your vehicles, real estate, and other personal property.
Arrest
Although it sounds extreme, continuously neglecting correspondence from the IRS and ignoring your mounting owed tax could eventually lead to arrest, criminal investigations, and facing Tax Court.
Tax Relief Solutions for Los Angeles, California
If you’re facing taxes owed, don’t wait until your Hollywood property is seized or an IRS agent comes knocking on your 90210 doorstep. Instead, seek tax relief from Community Tax, and allow our professionals to steer you back on track.
Our two-step program leads to peace of mind. We begin with a thorough investigation process by filing a Tax Authorization Information form on your behalf in order to gain access to a complete record of your tax account. We’ll gather all of the pertinent information pertaining to your tax liabilities while our team researches your financials and compares them against the IRS records. When we complete our investigation, we contact you with our findings and recommended course of action given your specific situation. Below are just a few ways CTax offers tax relief solutions to our Los Angeles clientele:
Following the investigation phase, step two of our tax relief program is the resolution phase. Here we gather more in depth financial information and generate supporting documents to present to the IRS and/or state of California (if applicable) for our proposal. Depending on how simple or complex your circumstance is, this process could last from one week up until one year, but we will contact you immediately following the completion of your resolution to provide you with all of the details. Looking to the future, we’ll provide you with all relevant information to make sure this problem doesn’t reoccur later down the road. We put a guarantee on our work, and will remain on file as your Power of Attorney to circumvent any complications moving forward.
L.A. Tax Relief Help from Community Tax
CTax is a nation-leading tax service provider, helping not only Los Angeles residents but taxpayers across the country with all of their tax-based needs. The reason behind our success is our unwavering dedication to top class customer service. You can rely on us to be available during your entire resolution process to ask your dedicated practitioner any questions or request a status update on your case. Our goal is to not only provide tax relief and fix your current issues but to keep you owed tax free in the future. We’re happy to negotiate Offers in Compromise, and to put an end to garnished wages, but we also make ourselves available for tax planning services, including estate planning, managing foreign income, and taxes related to business income. Allow us to file your income tax return, and you could see a refund you never knew was possible. Our talented team of practitioners will make sure to check for every applicable deduction and tax credit so you can see the most money back. To date, we’ve worked with over 50,000 clients spanning from the West to East Coast, with over $300 million in taxes owed resolved. Don’t let your owed tax compound another day; see what we can do to save your finances by contacting us today.
Los Angeles represents a wide spread in population demographic, spanning from the Beverly Hills mansions to the surfer streets of Santa Monica. Regardless of income level, all L.A. residents are subject to falling behind in their income taxes, especially considering California’s steep rates. If you’re living in Los Angeles and have found yourself in need of either state or federal tax relief help, the team of tax attorneys at Community Tax can help. We’re here to serve the 310 area code and all of its neighboring cities with cost-effective solutions for managing issues with the Internal Revenue Service. We specialize in a wide range of tax resolution services and finding IRS back tax help, no matter how large your outstanding owed tax may be. You may be facing estate tax matters or need help with payroll tax issues, and finding competent tax lawyers could help you avoid collection matters down the road.
If you’re feeling the pressure of Uncle Sam knocking at your door, keep reading to learn how CTax can provide affordable tax relief – both in Los Angeles and beyond.
California and Federal Tax Relief
Living in California isn’t cheap. We’re not only referring to the expensive real estate (and associated property taxes) found in Brentwood and along Rodeo Drive; Los Angeles residents are also subject to high food costs, exorbitant gas prices, and steep state income tax rates – on top of their federal tax obligations. That’s when it pays to have tax lawyers with a deep understanding of negotiating complicated processes with the California Franchise Tax Board, the California Department of Tax and Feed (formerly called the State Board of Equalization), and the Employment Development Department. Take a look at the progressive rates listed in the chart below. Someone with an income of $600,000 will pay $73,800 in California state income tax, which may or may not seem reasonable for such wealthy taxpayers. However, even those who rack in a modest income – say, $42,500 – will owe $3,400 in income taxes for a given fiscal year. See? It’s not just movie stars with offshore accounts who may need the legal services of a dedicated team.
However you look at it, thousands of dollars is a lot of money to set aside for a tax bill, which makes it unsurprising that so many Los Angeles residents come up short during tax season and fall into either state taxes owed, IRS taxes owed, or both. There are many different scenarios taxpayers may come to find themselves in a tax law firm, but let’s take a look at the most common situations and penalties:
You Can’t Afford to Pay Your Tax Bill
Let’s say you’re a law-abiding L.A. citizen who dutifully filed their tax return, and perhaps expected a sizable refund. As it turns out, you claimed too many allowances on your W-2 and didn’t withhold enough taxes from your monthly income. Now, you owe the government money, and since you weren’t prepared for this, don’t have enough readily-accessible cash set aside to pay your bill. If you can’t pay or won’t pay your tax obligation, the IRS will assess you with additional penalties, including a failure-to-pay penalty. This results in a fee generally around 0.5 percent per month of your unpaid taxes. It begins accruing the day after your taxes are due and doesn’t stop until they are either paid off or capped at 25 percent.
You Didn’t File Your Taxes
For whatever reason, you neglected to file your federal income tax return on time. Maybe you forgot, or life got in the way, but in any case the deadline came and went without your return having been submitted. In some cases, the IRS might do a substitute federal income tax return filing on your behalf, and the only consequence you’ll face is forgoing the refund you would have received. In other cases, however, the IRS is not so keen on saving you money, and could decide to apply a failure-to-file penalty to your account. The penalty for failing to file your income taxes is much steeper than failing to pay, as the IRS takes tax evasion very seriously – and at times may even prosecute it with criminal charges. Unfortunately, even if tax evasion wasn’t your end game, and the reason you neglected to file was innocent, you could still face the failure-to-file fee of around 5 percent of unpaid taxes for each month or partial month your return is late. You might think that the individual income tax rates are steep, but consider the penalties of not filing at all. According to the IRS, the failure-to-file penalty is on average ten times more costly than the failure-to-pay penalty. If you fail to file and fail to pay, you can begin accumulating owed tax very rapidly with compounded penalties.
These are the two most common ways to find yourself in need of IRS tax relief, but there are plenty of scenarios that could lead to you owing the government money, including audits, estate taxes, and payroll taxes for limited liability companies. Without seeking out IRS back tax help from tax attorneys with extensive experience, unresolved owed tax can create a number of scary situations:
Tax Lien
A tax lien is a legal claim against your property to secure payment of your owed tax. These usually come into being when the IRS assesses a tax against you and sends you a bill that you neglect or refuse to pay.
Tax Levy
An IRS levy permits the legal seizure of your property to satisfy a tax owed. It can garnish your wages, take money from your bank account or other financial institution, seize and sell your vehicles, real estate, and other personal property.
Arrest
Although it sounds extreme, continuously neglecting correspondence from the IRS and ignoring your mounting owed tax could eventually lead to arrest, criminal investigations, and facing Tax Court.
Tax Relief Solutions for Los Angeles, California
If you’re facing taxes owed, don’t wait until your Hollywood property is seized or an IRS agent comes knocking on your 90210 doorstep. Instead, seek tax relief from Community Tax, and allow our professionals to steer you back on track.
Our two-step program leads to peace of mind. We begin with a thorough investigation process by filing a Tax Authorization Information form on your behalf in order to gain access to a complete record of your tax account. We’ll gather all of the pertinent information pertaining to your tax liabilities while our team researches your financials and compares them against the IRS records. When we complete our investigation, we contact you with our findings and recommended course of action given your specific situation. Below are just a few ways CTax offers tax relief solutions to our Los Angeles clientele:
Following the investigation phase, step two of our tax relief program is the resolution phase. Here we gather more in depth financial information and generate supporting documents to present to the IRS and/or state of California (if applicable) for our proposal. Depending on how simple or complex your circumstance is, this process could last from one week up until one year, but we will contact you immediately following the completion of your resolution to provide you with all of the details. Looking to the future, we’ll provide you with all relevant information to make sure this problem doesn’t reoccur later down the road. We put a guarantee on our work, and will remain on file as your Power of Attorney to circumvent any complications moving forward.
L.A. Tax Relief Help from Community Tax
CTax is a nation-leading tax service provider, helping not only Los Angeles residents but taxpayers across the country with all of their tax-based needs. The reason behind our success is our unwavering dedication to top class customer service. You can rely on us to be available during your entire resolution process to ask your dedicated practitioner any questions or request a status update on your case. Our goal is to not only provide tax relief and fix your current issues but to keep you owed tax free in the future. We’re happy to negotiate Offers in Compromise, and to put an end to garnished wages, but we also make ourselves available for tax planning services, including estate planning, managing foreign income, and taxes related to business income. Allow us to file your income tax return, and you could see a refund you never knew was possible. Our talented team of practitioners will make sure to check for every applicable deduction and tax credit so you can see the most money back. To date, we’ve worked with over 50,000 clients spanning from the West to East Coast, with over $300 million in taxes owed resolved. Don’t let your owed tax compound another day; see what we can do to save your finances by contacting us today.
